POLITICAL AND ECONOMIC CHANGE
Political Changes
Revolution, Coups, and War
Revolution Fundamental change in the political and social institutions of
a society Characterized as having broad support and popular support Ex: Bolshevik Revolution, Mao’s Revolution, Iran Revolution of 1979
Coups Coup d’etat: the act of overthrowing an existing government Ex: Nigeria
War Civil and Interstate war “poltics by other means” -Clausewitz
Political Change: Trends and Types
Liberalization Regime transition
Russia, 1991; Mexico 2000 Political liberalization
The opening up of a nondemocratic system
Politically (constitution)
Political Change: Trends and Types
Democratizationnondemocracy procedural democracy substantive democracy
Incomplete democracyDemocracy is established but does not last for an
extended period of time
Democratization Wave (Huntington)Specific period in which the number of democracies
around the world increase
Stages of Democracy
1. Breakdown of nondemocracy Democratization from above (CCP) Democratization from below (PRI)
2. Establishment of Democracy Decision stage: institutional framework is
established
3. Consolidation of Democracy Stable enough to avoid breakdown of the
system
Characteristics of a Consolidated Democracy
Routinely held free and fair elections Peaceful transition of power Threat test: attempted coup or closely
contested elections Rule of law: compliance with rules and
procedures Legitimacy Time
Democratic Breakdown
Collapse or slow transformation into a nondemocratic system
Three stages of a democratic breakdown (Juan Linz)
1. Crisis: threat to the existing democracy2. Breakdown: collapse of the existing system3. Reequilibration: transformation or overhaul
of the democratic system vs. establishment of a nondemocratic system
Economic Changes
Economic Change: Trends and Types
NationalizationA process by which the government takes
over existing private companies and runs them as state-owned enterprises
PrivatizationGovernment owned enterprises are sold to
the public
Economic Changes: Trends and Types
Economic LiberalizationRemoval of price restrictions and privatization
of industry, encouragement of foreign direct investments
Neoliberal Economic ReformsThe use of various policies to free the economy
Promoting competition Reducing regulations
Lowering trade barriers Reduce government spending
Balancing government budgets
The Political Economy
Economic Development Changes in the structure of the economic
system Economic Growth
The increase in a state’s economic production over period of time
Measures GDP/GNP HDI PPP
THE POLITICAL ECONOMY
Economic Development Strategies Import Substitution Industrialization
State subsidy of specific domestic industries and other protectionist trade policies
Structural Adjustment Integration into global markets and
privatization
Types of Countries
Economically Developed Countries (EDCs) Great Britain
Less-developed Countries Nigeria
Newly Industrialized Countries Mexico and Iran
Countries in Transition Russia
Resolved
The domination of the CCP in political affairs is beneficial to the Chinese state
Resolved
“The two outstanding things about China’s 600 million people are that they are
‘poor and blank.’ On a blank sheet of paper free from any blotches, the
freshest and most beautiful characters can be written, the freshest and most
beautiful pictures can be painted.”-Mao
Globalization
Modernization Theory
Western Europe and the United States provide the ideal model for economic and political development
Stages of growth, capitalist economy represents the peak stage of development
Social, political, and cultural changes take place with development
Urbanization Factories locate near labor force Education and literacy rate rise with developmentPhysical Capital Machines and factories used to produce goods and servicesHuman Capital Productive characteristics of workers in a state
China’s Modernization Theory1. Countries reaching China’s level of development
have historically experienced political liberalization
2. Individual rights have not been granted (particularly in the countryside) even though the economy has risen
3. The CCP has departed from some Marxist ideology and limited some state-run economic activity
4. The pressure from the international community to abide by economic and legal agreements could lead to greater democratization
Dependency Theory
LDCs are left underdeveloped because of the history of colonialism
Colonialism exploited resources, leaving LDCs dependent upon the colonizers
Issues to impeding dependence: Trade relations encouraging a small number of raw materials
prevents them from diversifying their economies Encouraging long-term debt, prevents long-term planning and
building of infrastructure Multinational corporations controlling new economic development
in LDCs Support of repressive regimes that maintain these conditions
RepercussionsEconomically: the country stays underdeveloped
Politically: the country stays corrupt ad authoritarian
Globalization
The process of interconnectedness in the areas of economics, communications,
technology, and politics.
Foreign Direct Investment: corporations based in one country make investments to establish and operate businesses in other countries
Advantages to Globalization
Interdependence leads to cooperation and interaction
Eliminating trade barriers allows for the movement of human and physical capital, economic transactions are easier and more efficient
Rapid economic growth Access to information, technology, and
innovation Spread of democracy and human rights
Disadvantages to Globalization State sovereignty Pressures to compete in the global market Increase pressure from within the state to keep
peace Increase pressure from outside the state to conform
to ‘global norms’ The cost of rapid urbanization and development
(crime, inequality, environment)Fragmentation
State disintegration, as a result of dissolving bonds and interconnections that bind multiple political
actors and units together